Article 151 of the Saudi Bankruptcy Law

المادة 151 من نظام الإفلاس · الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: الإعلان عن إجراء إعادة التنظيم المالي لصغار المدينين

The article requires every creditor whose debt arose before financial reorganization for small debtors opened to submit its claim to the trustee within the set period, with documents and a statement of any security.

Official text (Arabic)

This article has not been amended since the law was issued.

1- على كل دائن نشأ دينه قبل افتتاح إجراء إعادة التنظيم المالي لصغار المدينين أن يتقدم إلى الأمين

-خلال المدة المحددة لذلك- بأي مطالبة له حالّة أو آجلة، أو موقوفة على شرط أو محتملة أو غير ذلك مما قد يكون له قيمة مالية حالية أو مستقبلية، وأن يرفق بمطالبته الوثائق والمعلومات المنصوص عليها في اللائحة وبياناً بقيمة مطالبته في تاريخ حكم المحكمة بافتتاح الإجراء، والدين الذي لم يستحق بعد وموعد استحقاقه، وأي وثيقة أخرى تؤيد مطالبته، ويجب أن يحدد كذلك ما إذا كانت مطالبته مضمونة وطبيعة الضمانات المقدمة لها.

2- إذا لم تكن قيمة المطالبة محددة بدقة وجب على الدائن تقديم المطالبة بقيمة تقديرية، ويتحقق الأمين من تقدير القيمة الفعلية لهذه المطالبة.

This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers

Article 151 explained in plain English

This article addresses creditors when the financial reorganization procedure is opened for a small debtor, and sets out what they must do to take part in the procedure.

Who must come forward? Every creditor whose debt arose before the procedure was opened, submitting to the trustee within the period set for that. Article 150 explains that the trustee invites creditors to submit their claims within a period of no more than 60 days from the date of the announcement, or from the date of notice for creditors known to the trustee.

Which claims are covered? Any claim, whether due, deferred, conditional on a condition, contingent, or anything else that may have a present or future financial value.

What must the creditor attach?

The documents and information provided for in the Implementing Regulations.
A statement of the value of its claim as of the date of the court's ruling opening the procedure.
The debt that has not yet fallen due and its due date.
Any other document supporting its claim.
A specification of whether its claim is secured, and the nature of the security provided for it.

If the value is not precisely determined, the creditor must submit the claim at an estimated value, and the trustee verifies the estimate of its actual value.

Specifying whether a claim is secured is important, because Article 152 allows the trustee to ask the court to include in the proposal a clause amending security, with the affected secured creditor obtaining equivalent security. For assessing a particular claim, it is advisable to consult a lawyer specialized in bankruptcy and commercial matters.

Practical example

A building materials supplier in Jeddah is owed one overdue invoice by a small contracting establishment, and another invoice that falls due after three months. After financial reorganization of the establishment was opened, the supplier submitted both invoices to the trustee within the set period, stating the value of its claim as of the date of the opening ruling and the due date of the second invoice, and stated that its debt was unsecured.

Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.

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